A New Order Flow Indicator You Can Use On MT4

Good order flow indicators for MT4 are really hard to come by these days. The ones which are out there aren’t that great, and don’t make it any easier to trade the market more effectively. This is about to change though, because at the weekend a friend of mine sent me an email containing a new indicator he had created after seeing the article about order flow indicators I published last week.

The indicator he’s made takes the open orders and open positions data from Oanda’s Order Book and overlays it on the chart for you, allowing you to easily see the prices at which traders have got all their open orders placed, and the points where they have got their trades open from. This not only makes it much easier to find where stop hunts are likely going to take place, but also makes it simpler to find out where supply and demand zones created by traders trapped in losing trades have formed.

Today’s article is going to be a little guide on how to install the order flow indicator onto MT4, and how to configure it correctly so that it shows the right information on the charts.

Before we start I must say the order flow indicator in this article is not free to download. Originally it was going to be posted onto the marketplace section of the MQL5 website, but they do not allow the sale of indicators with external inputs like this one has, so I told my friend I’d let him sell it on here, since most of the order flow articles which use the order book are on here anyway, so it just makes things easier.

You can use the button below to the purchase the indicator.

Upon purchase you’ll be taken to a page where you can download the indicator onto your device. If you don’t get taken to the page after purchase, please contact me at forexmentoronline@hotmail.com and I’ll send you a link which you can use to open the page and download the indicator. If you happen to run into any issues with the indicator itself, contact my friend at this email address mql@hotmail.nl.

 

How To Install The Order Flow Indicator

Installing the order flow indicator is relatively simple, although it’s a little bit different to how you would usually install custom indicators onto MT4, due to the fact there are some additional files you need to place in other folders you wouldn’t normally use when installing the typical custom indicators you can find online.

As is the case when installing all custom indicators, the first step to installing the order flow indicator is to open up the Data folder found under the File tab on MT4.

When the Data folder opens, click on the folder inside labelled MQL4, you should see a list of additional folders appear. You now need to place the files which came with the indicator into the following folders.

The fxlabsnet.dll file needs to be place in the Libraries Folder.

The Bz_OrderBook.ex4 file goes in the Indicators Folder.

The fxlabsnet.mqh file needs to be put in the Include Folder.

When you’ve got the files placed inside their respective folders, close the Data folder and restart MT4 by closing the window and reopening it again.

image of order flow indicator inside custom tab on mt4 If you’ve done everything correctly you should see the Order Book Indicator appear under the custom indicators tab on MT4.

 

How To Setup The Order Flow Indicator Correctly

With the indicator now installed, the next thing to do is configure the settings so that it displays the right information on the chart.

image of settings tab on order flow indicator When you select the Order Book indicator from the custom indicators tab, the box above should appear. The very first thing you need to do when this box opens, is head over to the Common tab and select “Allow Dll Imports” like I’ve done in the image above. Selecting this option gives the indicator permission to use the data from Oanda to show the open orders and positions on your chart. If you do not select this option the indicator will not display on your charts.

Once that’s done head over to the tab labelled Inputs.

image of inputs tab on order flow indicator setting The Inputs tab contains the settings which allow you to change the information the order flow indicator shows and how this information is displayed on the charts. Most of the settings you can change here are pretty self-explanatory, but there are a few which I need to explain in more detail, as it can be tricky to work out what they do when you first open up the indicator.

The first setting I need to explain is called Base Period Offset. This setting allows you to change where the indicator displays on the chart. For example, if you load the indicator without changing any of the settings it will look like this:

Notice how it doesn’t sit right at the edge of the chart ? The Base Period Offset setting allows you to change this, and move the indicator so that it sites right at the edge instead of being a little bit away from it.

Here’s what the indicator looks like with the Base Period Offset set to 48. You can see that now the indicator sits right at the edge of the chart next to where the prices are shown, instead of being placed more towards the center as it was in the previous image. It’s location will change depending on how far zoomed out you are, so if you tend to trade with your chart zoomed out a little more than what you can see here, you’ll have to increase the setting until you find the one which allows it to sit at the edge of the chart.

Now the second setting you need to understand is labelled Source, and can be found close to the top of the Inputs tab.

The source setting allows you to change what information the order flow indicator displays on the chart. If you select Source Open Positions, it will overly the Open Positions data from Oanda on the chart, and if you select Source Open Orders, it will show you what the Open Orders are. Unfortunately due to the limitations of the MT4 platform it cannot display both at the same, which means you’ll have to switch between the two setting whenever you want to see what the open orders or positions are.

If you look above the Source setting you’ll see another setting titled Filter Min Percentage. This is an option which allows you to set the order flow indicator so that it only shows you what the open orders or open positions are over a certain percentage, which you can see right at the top of the indicator.

Here’s an image of what the open positions graph looks like on the chart with the Filter Min Percentage at its default setting of 0.0.

Here’s how it looks with the setting on 0.5.

You can see that the only open positions the indicator now displays are those which are over 0.5%. Being able to change what percentage of open orders or positions the indicator shows, makes it easier to trade certain order flow strategies like stop hunts. Because the stop hunts you want to be trading are the ones which occur on the orders that have accumulated over 0.5%, so by changing the Filter Min Percentage setting to 0.5%, you’ll be able to see exactly which build up of stop orders you should watch for stop hunts to occur.

Two more settings which need explaining are the Emphasis Large Clusters and Emphasis Percentage variables. These two settings will make it much easier for you to see where a large amount of open orders or positions have been placed in the market. It does this by placing lines over the bars which you’ve set to appear over a certain percentage using the Emphasis Percentage option.

image of order flow indicator showing support and resistance levelsHere’s what the 1 hour chart of EUR/USD looks like with the Emphasis Large Percentage set to true, and the Emphasis Percentage option set to 0.5. You can see that lines have now been marked through all the open order bars which are over 0.5%, making it really easy to see where stop hunts may take place and where potential support and resistance levels are found.

The last setting which needs mentioning is called Notify Upon Hit. This setting allows you to set the indicator so that it notifies you when the market has encountered a certain percentage of orders or positions which have built up at a price level. You can also use the Zone Hit Minimum Percentage option to set it so that it only notifies you when the market has hit a number of stops or positions over a certain percentage.

 

How To Read The Indicator

Reading the graphs the order flow indicator shows on the chart is very much the same as reading the graphs on Oanda’s Order Book. The graphs themselves are split into four quadrants, and each quadrant gives you different information about the orders or positions that have been placed at the prices contained inside the quadrant.

image of order flow indicator showing open orders graph Here’s an image of the indicator showing the open orders graph on USD/JPY.

As you can see the graph is split into quadrants just like Oanda’s Order Book you can find online. The buy orders contained in the top left quadrant are the stop losses placed by traders who have sell trades open, whilst the sell orders you can see in the bottom right quadrant are the sell stop orders placed by traders with open buy trades. The normal buy orders which you can see to the left of the sell stop orders are a mixture of take profit orders and normal orders which execute buy trades upon being reached, and the sell orders seen next to the buy stop orders are a mix of take profit orders and orders to place sell trades when reached.

image of order flow indicator showing open positions graphHere’s an image of the open positions graph on USD/JPY

You can see that just like the open orders graph it’s split into four quadrants, with each quadrant showing you what the status is of the trades placed at the prices inside the quadrant. The buy trades which traders are currently holding open at a loss are found in the top left quadrant, with the buy trades being held open at a profit being found in the bottom right. The sell trades which people have got open at a profit are located in the top right quadrant next to the traders who are holding trades open at a loss, and the sell trades traders have got open at a loss are found in the bottom left.

 

Summary

Oanda’s order book has always had it’s fair share of limitations, but I think the order flow indicator removes a lot of them whilst adding some additional features which makes trading the order flow much easier than it was before. The only downside is that Oanda’s order book only updates every 20 minutes, which means the open positions and orders information the order flow indicator shows, will also only update every 20 minutes. So if you see the market run into a bunch of stops and then move away, you’ll have to wait until the order book has been updated to see if the stops have actually been hit.

I think Oanda updates the graphs every 20 minutes from the hour, so if it was 01:00 the order book would update at 01:20 – 01:40 – 02:00, helpful to know if you’re waiting for the order book to change.

If you have any questions about the indicator or would like any more help using it, please let me know in the comment section below.

 

8 comments

    • ForexMentorOnline
      Author

      No John, the indicator will display the open orders and positions for all the currencies which you can already view on Oanda’s order book. It overlays them on the chart so you can easily see where they’re located in the market.

      Hope this helps, have a good week – ForexMentorOnline

  1. Phil

    To all,
    If you got any questions or issues after you bought the indicator, please forward them to mql@hotmail.nl

    Make sure to Sent as many details and screenshots available.

    I will do my best to solve it.

    Thank you.

  2. Galung swa

    This indicator is not working because my country block oanda very silly thing and Phil (the developer of this indicator has kind attention and very helpful to solve the problem) it is not about the indicator but my silly government, 😱😱😱

  3. Abdalmouhemen

    Hello
    it is good indicator , but we need more explaining about the settings , what is the best settings to get the same information on oanda and best screen display setting , offset setting , ,,,

  4. Mark

    I am confused with the explanation of Open Orders (top left and bottom right). Title of them is straightforward Buy Stop Orders and Sell Stop Orders. No problem. My confusion comes with explanations of those quadrants written below the graph.
    Your explanation of Buy Stop Orders – “Stop Losses placed by traders who have sell trades open”.
    Do you mean that, if the stop loss of sell trade get triggered it will create a buy order? so the title Buy Stop Orders could be also written Sell Trades stop loss that will be a Buy Trade upon being triggered?

    Similar with your explanation of Sell Stop Orders – “Sell Stop Orders placed by traders with open buy trades”.
    Question as above, but the other way around?

    • ForexMentorOnline
      Author

      Yes that’s correct Mark. If the stop loss of a sell trade gets executed it’ll cause a buy order to come into the market. If the stop loss of a buy trade gets executed it’ll cause a sell order to enter the market. The buy stop orders could be written as “sell trades stop loss that will be a buy trade upon being triggered”, but that’s not what I’ve ever seen the orders being refereed to as, hence the reason I didn’t name them that or something which was
      similar.